Indemnity Agreement Advice by rrh19489


Indemnity Agreement Advice document sample

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									 Professional Indemnity
Ian Storm – Giles Insurance Brokers Limited
             Tel: 01582 542337
             Fax: 0870 4009406
 Typical Claims – Management Consultants

• An insured acted as an interim finance director. When
  the company suffered a downturn claiming the insureds
  advice was the cause. The insurer paid to defend these
  allegations and to protect his professional reputation
• Client developed a computer based training system, the
  CBT had been registered when an employee discovered
  a Swedish IT company using the same name, it had not
  been registered by the Swedish IT company but they
  had been using it widely across Europe. The PI policy
  paid for the product to be renamed and also the
  subsequent re-printing of the promotional materials
   Typical Claims – Marketing/Advertising

• Incorrect amounts of mailers in a direct marketing
  campaign were despatched to different regions resulting
  in a large number not being sent and the customer
  refused to pay the complete printing costs. The Insurer
  was able to pay the outstanding amount
• Market research undertaken on behalf of a brewery for a
  product launch was performed incorrectly and hence
  was not made available to the brewery on time for the
  product launch due to the resulting loss they sued for the
  whole cost. The insurer paid for the research to be
  conducted again and covered the loss suffered by the
       Typical Claims – IT consultants

• A contractor incorrectly installed a modem
  leading to extra costs of £10,000
• Contractor lost data carrying out a back up of a
  system leading to extra cost of £75,000
• New system installed for print, mail and storage
  in breach of the original agreement leading to a
  claim of £250,000
• New Data management systems failed to meet
  specification leading to a claim of £500,000
                    What is PI

• Negligent acts or omissions
  Other available extensions
  – Defamation
  – Infringement of intellectual property
  – Dishonesty
  – Breach of confidentiality
  – Any civil liability
  – Fidelity
  – Loss of Documents
                   Risk Area’s
• Insolvency, liquidation or    • Training
  receivership advice           • Human Resources
• Mergers and Acquisitions      • Strategic/organisation
• Investment                      consultancy
• Pollution                     • Project management
• Contracts and legal           • Health & Safety
  matters                       • Computer and IT
• Offshore or oil/gas related     consultancy
• Recruitment or placing of     • Marketing consultancy
  medical personnell
                 Risk Management
• Always have a contract in place – framework of services/written
• Keep client informed of all developments
• Receive regular client ‘sign off’ and any changes noted and signed
  off by client
• Ensure all sub-contractors carry adequate Professional Indemnity
  and Public Liability
• Do not react to a potential claim pick up the phone to your
  broker/insurer as most claims can be nipped in the bud
• Be a part of or have qualifications recognised by a professional body
• Do not step outside own expertise
    – Dabbling in unfamiliarity leads to claims
    Cover/General Information
• Cover is provided on a ‘Claims made basis’
• Standard limits of indemnity are £250,000,
  £500,000 or £1,000,000 – Higher limits are
  available but are usually dictated by specific
• Always complete a proposal form
• Declare all material facts - ???
• Use an expert broker- One size does not fit all!
              Why buy it
• Duty of care – Lee Cookson
• Protects the business and individual for
  their civil liabilities
• Provides access to expert defence lawyers
• Protects your professional reputation
• Protects your clients

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